by Dah Hui Lau (David)
Excellent compilation on Seth Klarman’s thinkings and principles. Many thanks to Distressed Debt Investing for the sharing.
Wisdom from Seth Klarman – Part 1
Seth Klarman and Baupost are in the news lately regarding the CIT Group Inc (CIT) bailout. While I do not want to delve into specifics, I will say that, outside the chance of fraudulent transfer / conveyance / some other quirky bankruptcy ruling dealing with the rescue financing, I would buy the new L+1000 loan (3% floor) all day long…especially if I was getting a 5 point advance fee. Currently in the grey market (when-issued) it is trading at 104-105 without the fee.
As we have not discussed Klarman or Baupost in the past few months, I thought I would take a few moments to pull out some of the more educational quotes from his fund letters through 2004-2007 (note: I do not have the fund letter from 2008…just the portions that were posted in a recent issue of Value Investor Insight).
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